Proper planning necessary before applying for financial loan

KUALA LUMPUR: Besides seeking the assistance of the Department of Insolvency and the Credit Counseling and Debt Management Agency, Malaysians facing bankruptcy action can also refer to the Malaysian Association of Borrowers and Consumers Solution (4PM) to solve their financial problems.
4PM president Rosland Mohd Arif said the association could provide counselling advice to borrowers, as well as negotiate with their money lenders, on the payment to resolve the debt.
Describing as "worrying" bankruptcy cases involving hire purchase, credit cards, personal loan and housing loan among Malaysians, he said 4PM had managed to help solve the problems facing a number of borrowers involved.
Referring to the statistics by the Department of Insolvency, he said 294,000 Malaysians were declared bankrupts last year for failing to settle their loans.
This showed there was no planning by the borrowers before applying for the loan, he said, adding that 70% of those filed for bankruptcy were between the age of 35 and 45 and they made up between 18,000 and 20,000 people who were declared bankrupt in a year.
"For example, consumers are easily deceived by offers of credit cards by banks and some having too many credit cards that they could not service the repayment," he told Bernama here today.
For cases involving housing loan and property, he said the association had expertise in the field and could help borrowers to dispose of the property to settle their debts.
"Disposing of the property is the best solution if the borrowers cannot afford the repayment," he added.
Rosland said banks and financial institutions should not pressure borrowers who were late in their repayment.
4PM, established in July 2013, is a non-governmental organisation that helps borrowers facing bankruptcy action or financial problems to resolve their problems.
Those in need of 4PM's assistance can contact Rosland at 019-2531000 or hotline at 1-700-818-707 . They can also come to 4PM office at Suite 8.01, Level 8, Menara Binjai, No.2 Jalan Binjai, Kuala Lumpur or No. 2.92, Level 1, Wisma Central, Jalan Ampang, Kuala Lumpur. — Bernama